Digital satellite radio in the US is predicted to enjoy impressive growth over the next several years, with an estimated 9 million new subscribers set to join by 2008, according to market research firm In-Stat.
A recent survey of the firm’s Technology Adoption Panel of US consumers, indicates a growing awareness of digital radio services, and has forecast sales of digital satellite radio to net three million new subscribers annually in the US through to 2008.
Increasing consumer awareness of satellite radio service is fuelling this anticipated growth, with half of the surveys respondents saying they had heard of satellite radio and that they had a good idea of its benefits.
Commenting on the survey findings, Michelle Abraham, In-Stat analyst said: “Price is still a barrier, particularly with new iBiquity HD radios. Most consumers want to spend less than $200, and although satellite radio receivers are readily available for less than $100, HD radio receiver prices must decline before they are of interest to many consumers.”
In the UK the declining sales of DAB radio prices, unique digital radio stations, and a wide range of DAB radio products combined to propel the market to new heights during 2004. The Digital Radio Development Bureau (DRDB) has predicted that nearly a third (29%) of UK homes will have a digital radio within the next four years (see Digital Radio In The UK Set For Boom Time By 2008).
In total DAB radio sets in the UK are forecast to grow by 1200% by 2008, taking today’s current total of individual units from one million to 13 million. Ralph Bernard, chairman of the DRDB said: “We are confident that the result is a considered and realistic projection showing that by 2008, DAB digital radio penetration will have reached 29% of British homes.”
The In-Stat report also earmarked the rest of Europe as fast adopters of the digital radio technology. A report by marketing consultancy, Eureca Research (see Digital Radio Set For Boom In Europe)forecast that by 2010 there will be nearly 40 million digital radio receivers in Europe, growing rapidly at a compound annual growth rate (CAGR) of 86.1%. Eureca predicted the market value of digital audio broadcasting products to increase at a CAGR of 40% from 2004-2010 to represent a €1.31 billion (£875.7 million) market opportunity for manufacturers by 2010.
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